What payment method does Chocolate Fish Coffee currently require for royalty fees?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, royalty fees are currently required to be paid via preauthorized bank draft. The standard royalty fee is 6% of gross sales, due weekly on Wednesday. Gross sales include all sales generated by the business, whether for cash or credit, but exclude bona fide refunds to customers, sales taxes collected, sales of used equipment not in the ordinary course of business, and sales of prepaid cards (although redemption of such cards is included).

In addition to the standard royalty fee, Chocolate Fish Coffee also collects a Brand Fund contribution of 1% of gross sales, which will be withdrawn by electronic wire transfer from the franchisee's designated bank account.

While preauthorized bank draft is the current requirement, Chocolate Fish Coffee retains the right to require an alternative payment method in the future. This flexibility allows Chocolate Fish Coffee to adapt to changing banking practices or to accommodate specific franchisee situations, though any such change must be applied uniformly unless waived or eliminated at the franchisor's discretion.